Adani Realty secures ₹30,000 crore contract for Bandra Reclamation redevelopment in Mumbai

Adani Realty has won the contract to revamp the 24-acre Bandra Reclamation land from MSRDC, awaiting final approval from the MSRDC (Maharashtra State Road Transport Corporation)Board in their upcoming meeting.

Adani Realty became the ‘preferred bidder’ by offering 22.79% revenue to MSRDC, surpassing Larsen and Toubro’s bid of 18%. Despite L&T having a stronger net worth, Adani’s higher bid secured preference.

According to the report, the land parcel has a potential development area of 45 lakh square feet and is valued at around ₹30,000 crore.

MSRDC’s viewpoint

Anil Kumar Gaikwad, Vice Chairman and MD of MSRDC, stated that the decision was made on a revenue-sharing basis, with Adani’s higher bid aligning with the government’s goal of maximizing revenue for infrastructure projects.

Gaikwad dismissed claims of bias in the bidding process, stressing its openness and transparency, and the selection of financially and technically capable developers like Adani Realty and L&T.

“Given MSRDC’s revenue-sharing model, the developer offering the highest percentage of revenue, like Adani, is the preferred choice, ensuring benefits for the government and supporting our infrastructure projects,” explained Gaikwad.

“Both Adani and L&T meet the rigorous eligibility criteria for the tender process and are technically capable of executing a project of this size and complexity within the stipulated timeline. However, Adani’s higher revenue offering sets it apart,” he added.

Details of the Project

Gaikwad told “If the board approves, Adani Realty will manage funding, clearances, and pay a minimum of ₹8,000 crore to MSRDC. The revenue-sharing model ensures MSRDC receives 22.79%.”

At the MSRDC bidding process, strict criteria were established, including a minimum consolidated net worth of ₹15,000 crore by March 31, 2023. This requirement raised concerns among some builders at the pre-bid meeting.

Although 18 leading players participated in the pre-bid meeting, including Adani Realty, Godrej Properties, JSW, K.Raheja Corp, L&T Realty, Lodha, Mahindra Lifespaces, Oberoi Realty, Phoenix Realty, Runwal, Sahana Group, Sattva, Sunteck Realty, Sumitomo, Wadhwa Group, and Wellspun, among others, only three submitted bids.

Some anonymous sources expressed concerns about the eligibility criteria, suggesting they favored only a few developers. Some builders argued that the ₹15,000 crore net worth requirement limited opportunities for most developers. However, MSRDC justified the criterion, citing the developer’s commitment to pay ₹8,000 crore over 9 to 14 years.

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